Unicaja Banco (UNI) Q3 2024 earnings summary

Executive summary

• Net income rose 58% year-over-year to EUR 451 million for the first nine months of 2024, driven by higher banking margin, strong core banking results, and lower provisions.

• Customer funds increased 3.6% year-on-year, with off-balance sheet funds up nearly 7%.

• Asset quality strengthened, with NPL balances down 22% year-on-year and coverage ratio up to 70%.

• CET1 fully loaded ratio reached 15.4%, reflecting strong solvency and capital buffers.

• Shareholder remuneration enhanced by a 13% return, including dividends and a share buyback that cancelled 3.14% of share capital.

Financial highlights

• Net interest income up 19% year-over-year for the first nine months, stable quarter-on-quarter at €384 million.

• Cost-to-income ratio improved to 44%.

• Pre-provision profit up nearly 22% year-on-year.

• Total provisions fell 32% year-on-year, supporting improved profitability.

• Tangible book value per share up 7% year-to-date.

Outlook and guidance

• Net interest income growth for 2024 now expected above 10%, up from prior guidance.

• Fee income expected to decline mid-single digits or remain flat in 2024 due to strategic shifts.

• Total costs expected to grow mid-single digits, mainly from higher personnel expenses.

• Cost of risk guidance improved to 25–30 bps for 2024, at the low end of the range.

• Adjusted ROTE expected above 10% for 2024.